Musk offers to buy Twitter

[Eric]

Isn't pump and dump illegal?

He did it in the crypto market with no repercussions, why should he stop now?

Musk Denies Bitcoin ‘Pump And Dump’—And Says Tesla Will Resume Transactions Once This Mining Goal Is Reached

Bitcoin prices jumped nearly 5% after the eccentric Tesla billionaire's tweet.

www.forbes.com

 

[diamond.g]

He did it in the crypto market with no repercussions, why should he stop now?

Musk Denies Bitcoin ‘Pump And Dump’—And Says Tesla Will Resume Transactions Once This Mining Goal Is Reached

Bitcoin prices jumped nearly 5% after the eccentric Tesla billionaire's tweet.

www.forbes.com

Wait the Crypto market has SEC oversight?

 

[DT]

As long as there’s public disclosure and a proper paper trail, including legitimate offer documentation, it’s legal.

 

[Chew Toy McCoy]

Wait the Crypto market has SEC oversight?

If we're going to be honest, the SEC pretty much oversees jack shit and essentially issues parking tickets. They're the meter maids of finance in both ability and respect.

 

[Renzatic]

Isn't pump and dump illegal?

It is. The question is whether he'll still stand to turn a profit after the fines.

 

[JayMysteri0]

Isn't pump and dump illegal?

Evidently not when anyone else could see it coming a mile away.

Also, odds are the punishment is a fine.

A fine to a guy who can buy a large portion of Twitter stock and is a known troll.

It helps to also remember that Musk hates two things in this world a lot. Twitter & the SEC. Why? Because they can call him on his bullshit when no one else seems to be able to. Since he can't buy the SEC, this probably seemed like an alternative.

 

[DT]

It’s tricky with Musk, since just his presence as an investor moves the needle so much. Taking specifically before he made the purchase offer - now that is where it really gets into the weeds.

 

[JayMysteri0]

It’s tricky with Musk, since just his presence as an investor moves the needle so much. Taking specifically before he made the purchase offer - now that is where it really gets into the weeds.

Which is what I was referring to him being investigated and sued.

Since he basically didn't report his purchasing which started earlier in the year. One Twitter investor sold his stocks just before Musk did finally file, causing the investor to believe he lost out selling too early.

But Musk doesn't care, it worked absolutely out fine for him & 'f' others. Which is the best case for why he shouldn't be involved with Twitter.

 

[SuperMatt]

Isn't pump and dump illegal?

Does he care if he gets fined? He hasn’t in the past, and just whines about how mean the SEC is to him.

 

[diamond.g]

Looks like Twitters board is gonna say no and made a provision to prevent hostile takeover by a single entity/person...

Twitter Adopts Limited Duration Shareholder Rights Plan, Enabling All Shareholders to Realize Full Value of Company

/PRNewswire/ -- Twitter, Inc. (NYSE: TWTR) today announced that its Board of Directors has unanimously adopted a limited duration shareholder rights plan (the...

www.prnewswire.com

 

[Yoused]

Hopefully a dump will drive the share price down and he will lose some buttons off his shirt.

 

[diamond.g]

Hopefully a dump will drive the share price down and he will lose some buttons off his shirt.

Well the stock was up 1.5 dollars after hours so it is likely the market will like the current response. Plus it looks like the Saudi's aren't interested in Twitter being bought out or going private.

 

[Herdfan]

Another theory...

https://www.twitter.com/i/web/status/1514816433389068292/

And the board with threatening a poison pill are playing right into his hands.

 

[Herdfan]

Does he care if he gets fined? He hasn’t in the past, and just whines about how mean the SEC is to him.

Probably not. And even if he were sued by the investors who sold their stock in the 5 day period where he failed to disclose the purchase, he could simply make them whole. Probably wouldn't cost him more than a few million.

Large investors don't fear the SEC.

 

[ronntaylor]

Large investors don't fear the SEC.

Crooks don't fear the SEC.

 

[Yoused]

Crooks don't fear the SEC.

Does that stand for Society of Elite Croupiers?

 

[gollum]

I read that Musk has about 3 billion in cash - by all appearances, he will need to secure financing. Much of his stock is also used as collateral for loans as well. He may be insanely rich but he's not positioned to quickly execute a purchase.

Also the Twitter board just made it very expensive for him, as they adopted a poison pill.

Finally, a couple of the larger shareholders have come out against the offer stating the dollar amount is too low.

 

[SuperMatt]

I read that Musk has about 3 billion in cash - by all appearances, he will need to secure financing. Much of his stock is also used as collateral for loans as well. He may be insanely rich but he's not positioned to quickly execute a purchase.

Also the Twitter board just made it very expensive for him, as they adopted a poison pill.

Finally, a couple of the larger shareholders have come out against the offer stating the dollar amount is too low.

I haven’t heard much talk about the tax aspect. We know the billionaires seldom, if ever, get taxed on their wealth. But if the offer from Musk is “cash” then he will need to sell investments. That means the government gets a slice of those realized gains. Unless perhaps buying the company then counts as a “business expense” that is deductible. I wouldn’t be surprised if that’s yet another loophole for the mega-rich.

 

[Cmaier]

I haven’t heard much talk about the tax aspect. We know the billionaires seldom, if ever, get taxed on their wealth. But if the offer from Musk is “cash” then he will need to sell investments. That means the government gets a slice of those realized gains. Unless perhaps buying the company then counts as a “business expense” that is deductible. I wouldn’t be surprised if that’s yet another loophole for the mega-rich.

No, he wouldn’t sell those investments to get cash. Billionaires put the investments up as collateral to get loans. Then they use the loans to buy things. That way they don’t have to pay taxes on realized gains.

 

[Cmaier]

By the way, that’s why my tax proposal is that anyone who gets loans over a certain amount using unrealized income as collateral would have to pay taxes on the loans as if they are income. As they pay the loan back they can deduct the principle. That way, when they sell the actual assets (which they seldom do now) it would be taxed as capital gains (or losses) as it is now. I’d not allow the interest to be deducted, in order to discourage multi-generational hoarding; this way you are discouraged from taking a loan and keeping the assets, because it costs you the interest.